The popularity of the internet has made many entrepreneurs take advantage of its advantages and start fully structured companies on online platforms. Internet businesses follow a different business model than traditional companies.
Think for a moment about how trade has changed.
Also read: The best time in history to create a company is today.
Previously, commercial activities, such as the exchange of goods and services for money, were carried out only in the traditional way, that is, the client needed to go to a fixed place, for example to the supermarket, look at the variety of products, choose what he wanted purchase and payment was made directly at the point of sale.
However, with the development of electronic commerce, people can buy products, pay bills or transfer money with just one click.
Many people still prefer traditional commerce over electronic commerce, because they think that the latter is not safe, however, it is just a myth. As in everything, both traditional and electronic commerce have risks.
Despite the fact that the development of companies over the Internet and, even more importantly, the culture of buying over the Internet, is much more developed in North America and Europe than in Latin America, it is necessary to think about the future and understand that as an entrepreneur you must go a long way. step forward, and be present when the online shopping trend in Latin American countries is much more established.
See below some of the advantages that an online business has over a traditional company.
TRADITIONAL COMPANY |
INTERNET COMPANY |
| High initial investment. | Low initial investment. |
| High expenses. | Reduced expenses. |
| You need a physical location. | You don’t need a physical location. |
| Manual transaction process. | Automatic transaction process. |
| Limited hours of operation. | Your business will be open 24 hours every day of the year. |
| Interaction with customers is personal. | The interaction with customers is virtual. |
| Your business is limited to a specific area. | Your business has an international reach. |
One of the disadvantages of an online business is the delivery times of the product. If a customer goes directly to the place of purchase, he will get the product and satisfaction immediately. If you buy online, you must wait for your product to be shipped.
Despite the advantages of being able to buy from the comfort of home and being able to make a quick transaction without having to move, make electronic commerce something very profitable for both customers and companies.
Marketing.
In terms of Marketing, traditional businesses must focus on the five senses to influence the sale. For example, keeping the product and the point of sale aesthetically attractive.
In a store, consumers have the option of touching the product and perceiving its quality through the sense of touch; this is important for physically sensitive items like clothing.
On the other hand, Internet companies generally have to rely mainly on sight. The physical store is replaced with digital images.
The inability to touch and try the product first hand is replaced with copy writing highlighting the details and benefits of the product. Additionally, you have available the reviews of previous buyers to help you make the decision to buy.
Also read: How to make money with a blog.
An online company has the ability to present a wider variety of products, since it does not need to have the physical product on hand.
Finance.
In the financial area, creating and maintaining an online business is definitely cheaper than a traditional company.
An online business requires the purchase of a domain and the payment of a hosting, which requires less investment than renting a premises, office and buying equipment.
Traditional companies have seen the incredible advantages of trading on the Internet and currently mix both modalities. However, many of you who are just starting out might consider a 100% online business due to the advantages mentioned above.
Tell us what you think in the comments.
And remember, if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
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